Introduction -- Contemporary Economics and Inequality -- Growth Theories and Convergence Hypothesis -- Who Are Agents in Agent-Based Economic Models? -- Models of Subsistence Consumption -- Models of Competition -- The Dynamic Model of Market Inequality -- Conclusion.

This book examines empirical and theoretical research on economic inequality from the perspective of dynamic models. By using advanced mathematical tools, it reveals fundamental market dynamics and underlines the role of subsistence constraints and competition in economic distribution.

We investigate the relative roles of monetary policy and shocks in causing the Great Moderation, using indirect inference where a DSGE model is tested for its ability to mimic a VAR describing the data. A New Keynesian model with a Taylor Rule and one with the Optimal Timeless Rule are both...

We develop a dynamic stochastic full equilibrium New Keynesian model of two open economies based on stochastic differential equations to analyse the interdependence between monetary policy and financial markets in the context of the recent financial crisis. The effect of bubbles on stock and...